Correlation Between PT Sarana and Magyar Telekom
Can any of the company-specific risk be diversified away by investing in both PT Sarana and Magyar Telekom at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining PT Sarana and Magyar Telekom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Sarana Menara and Magyar Telekom Plc, you can compare the effects of market volatilities on PT Sarana and Magyar Telekom and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in PT Sarana with a short position of Magyar Telekom. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Sarana and Magyar Telekom.
Diversification Opportunities for PT Sarana and Magyar Telekom
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SMNUF and Magyar is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PT Sarana Menara and Magyar Telekom Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Magyar Telekom Plc and PT Sarana is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on PT Sarana Menara are associated (or correlated) with Magyar Telekom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Magyar Telekom Plc has no effect on the direction of PT Sarana i.e., PT Sarana and Magyar Telekom go up and down completely randomly.
Pair Corralation between PT Sarana and Magyar Telekom
Assuming the 90 days horizon PT Sarana Menara is expected to under-perform the Magyar Telekom. In addition to that, PT Sarana is 3.61 times more volatile than Magyar Telekom Plc. It trades about -0.14 of its total potential returns per unit of risk. Magyar Telekom Plc is currently generating about 0.14 per unit of volatility. If you would invest 1,014 in Magyar Telekom Plc on November 3, 2024 and sell it today you would earn a total of 732.00 from holding Magyar Telekom Plc or generate 72.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 22.58% |
| Values | Daily Returns |
PT Sarana Menara vs. Magyar Telekom Plc
Performance |
| Timeline |
| PT Sarana Menara |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Magyar Telekom Plc |
PT Sarana and Magyar Telekom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Sarana and Magyar Telekom
The main advantage of trading using opposite PT Sarana and Magyar Telekom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Sarana position performs unexpectedly, Magyar Telekom can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Magyar Telekom will offset losses from the drop in Magyar Telekom's long position.| PT Sarana vs. Proximus NV ADR | PT Sarana vs. Singapore Telecommunications Limited | PT Sarana vs. Telstra Limited | PT Sarana vs. MTN Group Ltd |
| Magyar Telekom vs. SwissCom AG | Magyar Telekom vs. Hellenic Telecommunications Org | Magyar Telekom vs. Telefonica SA ADR | Magyar Telekom vs. Lumen Technologies |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |